Calculate the cost of adding third machine

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Reference no: EM131089599

The XYZ Printing Co. wants to calculate the cost of adding a third machine. Comment on the following statement made by the company accountant: “If we add a third printing press, our total costs will increase from $870 to $960. Therefore the marginal cost of the third machine is $960/3=$320.” Is the accountant correct? Explain

Reference no: EM131089599

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